Investment principles and risk - The Chartered …

1 PublishedJune2017 Copyright the endof thisunit,candidateswillhaveinvestigatedt he: Characteristics,inherentrisks,behavioura ndcorrelationof assetclasses,andinvestmentproducts; Macro-economicenvironmentandits impacton assetclasses; Meritsandlimitationsof the maininvestmenttheories; Natureandimpactof the maintypesof riskon investmentperformance; Performanceof theexamination* characteristics,inherentrisks,behavioura ndcorrelationof macro-economicenvironmentandits impacton meritsandlimitationsof the principlesof the timevalueof natureandimpactof the maintypesof riskon characteristics,inherentrisks,behaviours andrelevanttaxconsiderationsof principlesof performanceof multipleresponse*Thetestspecificationhas an in-builtelementof is designedto be usedas a guidefor studyandis not astatementof actualnumberof questionsthatwillappearin ,the numberof questionstestingeachlearningoutcomewillg enerallybe withinthe rangeplusor minus2 of the Methodof assessment:100questions:72 standardformatand28 allowedfor thisexamination.

2 Thissyllabuswillbe examinedfrom1 September2017to 31 August2018. Candidateswillbe examinedon the basisof Englishlawandpracticein the tax year2017/2018unlessotherwisestated. It shouldbe assumedthatall individualsare domiciledandresidentin the UK unlessotherwisestated. Candidatesshouldreferto the CII websitefor the latestinformationon changesto lawandpracticeandwhentheywillbe examined:1. Selectthe appropriatequalification3. Selectyouruniton the righthandsideof the pagePublishedJune2017 Copyright characteristics,inherentrisks, characteristicsandinherentrisksofthe behaviourandcorrelationof assetclassesandtheirrelevanceto macro-economicenvironmentandits impacton keyeconomictrendsandtheirimpacton keyeconomicindicators, impactof meritsandlimitationsof the maininvestmenttheories, , principlesof the timevalueof principlesof the timevalueof ,discounts, natureandimpactof the maintypesof natureandimpactof the maintypesof riskon natureandimpactof the maintypesof riskon characteristics,inherentrisks,behaviours andrelevanttaxconsiderationsof advantagesanddisadvantagesofdirectinvest mentin securitiesandassetscomparedto characteristics,inherentrisks.

3 Behavioursandrelevanttax considerationsof themaintypesof KnowYourClientrequirementsappliedto the mainapproachesto basicprinciplesof of4 SyllabusconstructionThesyllabusconsistso f comprehensivelistingof theindicativecontentis providesdetailsof :Theexaminationwilltestthe is providedfor guidanceonlyandisnot in itselfthe subjectof the the studytextscanbe addedfrequently- for informationaboutnewreleasesandlendingser vice,pleasego (andebooks) , :a step-by-stepguidetothe mathematicsof :FT PrenticeHall,2012.* Bodie,AlexKane,AlanJ. :McGraw-Hill, Bodie,AlexKane,AlanJ. :McGraw-Hill, , ed. EdwinJ Eltonet :JohnWiley, finance:an introductionto financialmarkets,businessfinance, ,Wiley,2010.*TheFinancialTimesguideto PrenticeHall, makingthe rightinvestmentdecisions:howto , :EcademyPress, (CII/PFSmembersonly):Investmentriskandun certainty:advancedriskawarenesstechnique sfor the :Wiley, ,H.

4 :OxfordUniversityPress, :the psychologyof ,NewJersey:Wiley, :a :AcademicPress, :a , :AuerbackPublications, factfilesare concise,easyto digestbut technicallydenseresourcesdesignedto enrichthe ,life andpensionsandfinancialservicessectors,t he factfilecollectionincludeskeyindustrytop icsas wellas lessfamiliarorspecialistareaswithinforma tiondrawntogetherin a waynot (CII/PFSmembersonly). Theregulationof Theregulationof availableunderthe PersonalFinancesectionof the (previouslyFinancialsolutions).London:CI I. Six issuesa (CII/PFSmembersonly). annuals,6v (Capitalgainstax;CorporationTax;Incometa x;Inheritancetax;Trustsandestates;Value- addedtax). , H Black,2005.*FinancialConductAuthority(FC A) s financialdictionary:over2, :HarrimanHouse,2007.*Lamont s glossary:the :Taxbriefs, (CII/PFSmembersonly).PrudentialRegulatio nAuthority(PRA) *Alsoavailableas an (CII/PFSmembersonly).

5 PublishedJune2017 Copyright of4 ExaminationguidesAn examinationguide,whichincludesa specimenpaper,is availableto youhavea currentstudytextenrolment,the currentexaminationguideis includedandis accessibleviaRevisionmate( ). Detailsof howtoaccessRevisionmateare on the firstpageof is recommendedthatyouonlystudyfromthe mostrecentversionsof the Londonholdsa lectureonrevisiontechniquesfor CII examsapproximatelythreetimesa (CII/PFSmembersonly).